Confidence Close to Six-Year High

July 31, 2007  by in UnCategorized   

By Home Furnishings Business in on August 2007 The Consumer Confidence Index shot up 7.3 points in July, following a dip in June, reaching 112.6, catapulting the Index to its highest reading in nearly six years. The Index reached 114 in August of 2001.

The Present Situation Index also ballooned up, to 139.2 from 129.9 in June and the Expectations Index increased to 94.8 from 88.8.

Also showing improvement were consumers’ home purchasing plans. Exceeding June results, 3.1 percent of consumers in July expected to buy a home in the next six months, up from a revised 2.9 percent in June. In July, 7.2 percent of consumers planned an auto purchase in the next six months, up from 6 percent in June while 31.5 percent expected to buy a major appliance, off from 35.3 percent last month.

“An improvement in business conditions and the job market has lifted consumers’ spirits in July,” said Lynn Franco, director of the Conference Board’s Consumer Research Center. “The President Situation Index is also at a near six-year high (August, 2001). Looking ahead, consumers are more upbeat about short-term economic prospects, mainly the result of a decline in the number of pessimists, not an increase in the number of optimists. This rebound in confidence suggests economic activity may gather a little momentum in the coming months.”

The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The cutoff date for July’s preliminary results was July 24.